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The national and international impacts of coal-to-gas switching in the Chinese power sector

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  • Arora, Vipin
  • Cai, Yiyong
  • Jones, Ayaka

Abstract

We evaluate the national and international impacts—on energy consumption and production, trade, and economic activity—of Chinese coal-to-gas switching in the electric power sector. We find that assumptions about growth rates in electricity generation from renewables are the key determinant in evaluating the economic consequences for coal-to-gas switching in China. The ability to supplement natural gas generation with renewables leads to smaller reductions in Chinese and global economic activity than the alternatives.

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  • Arora, Vipin & Cai, Yiyong & Jones, Ayaka, 2016. "The national and international impacts of coal-to-gas switching in the Chinese power sector," Energy Economics, Elsevier, vol. 60(C), pages 416-426.
    • Handle: RePEc:eee:eneeco:v:60:y:2016:i:c:p:416-426
    DOI: 10.1016/j.eneco.2016.07.026
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    More about this item

    Keywords

    Coal-to-gas switching; Electric power sector; Natural gas; Computable general equilibrium;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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